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China could build a new base in Pakistan as part of a global expansion of its military facilities, a US report says.

The report from the Pentagon predicts China will expand its military prowess after the construction of its first overseas naval base in Djibouti, a strategic location at the southern entrance to the Red Sea on the route to the Suez Canal.

It said: "China most likely will seek to establish additional military bases in countries with which it has a longstanding friendly relationship and similar strategic interests, such as Pakistan.”

The Pentagon also noted continued friction between China and Pakistan’s main rival, India, as Beijing and New Delhi “accuse each other of frequent incursions and military build-ups” along a disputed frontier.

Pakistan is currently a primary market for Chinese arms sales and a key partner in Beijing’s plan for a new Silk Road, the Belt and Road initiative. India has previously voiced anger over the $1 trillion project.

China started building its Djibouti base just over a year ago and some observers say it will be operational later this summer. It is stationed just a few miles from a US camp.

The report also noted tensions between China and Taiwan and highlighted Beijing’s aggressive posturing in the disputed South China Sea.

A Chinese foreign ministry spokeswoman said Beijing “firmly opposed” the report, while the Defence Ministry said it hyped up the theory that China is threatening its neighbours as its economic clout continues to rise.

Richard Bitzinger, a military expert at the S. Rajaratnam School of International Studies in Singapore, said he would not be surprised if China built an official military base in Pakistan.

“The Chinese have helped to build a sizable deepwater port in Gwadar, and Chinese submarines have already been spotted in the port of Karachi,” he told The Telegraph.

“Even without an actual base, Pakistan provides considerable support to a growing Chinese naval presence in the Indian Ocean Region and is thus part of an important ‘network of access’ for the People’s Liberation Army (PLA) Navy.”